Chapter 3 - Law Of Contract Flashcards
What is this an example of where there must be at least two persons to make a contract but only one of them is legally bound
Unilateral contract
What is it an example of what each party makes a promise to the other and both are legally bound
Bilateral contract
Why can avoid contracts have no binding effect on either party
Because avoid contract is no contract at all
Why is a voidable contract binding
If one of the parties will have the right if they wish to set it aside
What are the Five essential for the formation of a valid contract
Agreement Intention to create legal relations Consideration Must be in the form required by law Parties must have the capacity to contract
What is six ways made an offer to be made
In writing Orally By conduct To one person To a group of people To the public
What happens is there is a true offer
The offeror intends to be immediately bound if that offer is accepted as it stands
As an offer cannot remain in open indefinitely what ways can it be ended
A time limit or a reasonable time Death Acceptance Revocation Rejection/counter offer
What does it mean when it says acceptance must be unqualified
It must exactly match the terms of the offer
What are the five rolls of consideration
Must be real Mustn’t be adequate Mustn’t be in the past Must move from the promisee Mustnt be something that the promisee is already bound to do
What six contracts must be in writing
Bills of exchange
Checks and promisSory notes
The transfer of shares in a registered company
Some consumer credit hire purchase transactions
Marine insurance contracts
Sale or other disposition of land
Under English law a minor is below the age of what
18
What three type of contracts are made by minors
Contracts which are binding (necessaries such as food and clothing)
Contracts which are binding unless they are repudiated
Contracts which are not binding on the minor (borrowing money, buying things that aren’t necessaries)
Are contracts made by patients with a mental health condition generally valid?
Yes
A patient with a mental health condition can:
Ratify a contract which previously did not bring them after they are cured
Must also pay a reasonable price for necessaries supplies to them
Can a drunken person avoid a contract?
Yes, only if they didn’t understand what they were doing and the other party knew of this
What is certainty of terms
The contract must be certain and no contract is formed if a vital term is missing or if the meaning of an essential term is uncertain
What are express terms
Words spoken by the parties or written down by them
Oral contracts sometimes present problems of proof but not when the contract is in writing
What three ways can implied terms be
In fact
By custom
By usage
What are terms implied in fact
One which is not usually stated but is presumed to be intended by the parties
‘It goes without saying’
What are terms implied in custom
Custom of the market in which the parties to the contract operate
What are times implied in law
The rights and duties of the parties may be based in terms of the law automatically applies
What does the Unfair Contract Terms Act apply to
Business to business contracts
Under the unfair contract terms act what is negligence liability
Can’t exclude their liability for death or bodily injury arising from negligence
